mutual fund

American  

noun

1. an investment company that issues shares continuously and is obligated to repurchase them from shareholders on demand.

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mutual fund British  

noun

1. British equivalent: unit trust.  an investment trust that issues units for public sale, the holders of which are creditors and not shareholders with their interests represented by a trust company independent of the issuing agency

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mutual fund Cultural  

1. A company organized for the purpose of making investments. A mutual fund gets its capital stock from private individual investors, who, in effect, allow the mutual fund to decide where to invest their money.

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Etymology

Origin of mutual fund

First recorded in 1790–1800

Example Sentences

The Bengaluru resident rushed to the bank seven times in three days to sell off his mutual funds.

From The Wall Street Journal

Unlike mutual funds, credit funds don’t allow investors to redeem their shares at any time.

From The Wall Street Journal

And they are taking their wallets and mutual funds with them.

From The Wall Street Journal

Direct indexing with private accounts has become an increasingly popular alternative to mutual funds and exchange traded funds for tax-sensitive investors seeking to harvest every possible tax loss in their portfolios.

From Barron's

“There’s Vanguard the mutual fund/ETF company we all know and love that provides the low-cost, diversified index funds,” he says.

From Barron's

Related Words

• bond fund
• closed-end fund
• investment fund
• retirement plan